DraftKings and FanDuel have both been named in a new Pennsylvania lawsuit which accuses the sportsbooks of using data supplied by the NFL to exacerbate problem gambling behaviors.
Filed on Tuesday by The Public Health Advocacy Institute (PHAI) in Philadelphia County Court of Common Pleas, two plaintiffs have alleged that the sportsbooks used the data supplied by the league to create a “known addictive product” that would encourage players to keep betting, eventually leading to financial losses.
Making reference to the sportsbooks’ micro-betting product, the complainants, Christopher Sage and Terry Thompson, have accused the sportsbooks of:
- Design defect
- Failure to warn
- Negligence
- Unfair trade practices
- Intentional infliction of emotional distress
The plaintiffs have claimed that in-game micro-betting markets are “a relentless, always-on addiction-amplifying machine through a personalized and lightning-fast sports gambling interface unlike anything previously sold to gambling customers”.
The suit also described the sports betting apps as enabling “sports gamblers to make bets from anywhere, 24 hours a day, seven days a week,” with players able to place bets on “a virtually limitless array of events that occur during the course of a sporting contest where the odds for the wager rapidly change as the game unfolds”.
Genius Sports, the data partner to the NFL, was also named as a defendant in the case, in addition to five sportsbook employees who were designated VIP hosts to the two bettors in question.
It states that Genius Sports and the NFL “not only facilitate but encourage and profit from micro-betting through their supply of officially-licensed real-time game and player data”.
A legal battle wages on
Although it was noted that both men had gambled without issue for nearly two decades, the complainants alleged that both operators have “weaponized advancements in mobile technology and artificial intelligence” to encourage users toward micro-betting markets, which they believe has resulted in exacerbated problem gambling behaviors.
“That all changed once they started using the FanDuel and DraftKings Sportsbook Apps,” the complaint stated.
“Within just a few years of placing their first microbets on the Sportsbook Apps, Plaintiffs nearly lost everything.
“Due to the known and unique ability of such high-speed, fast-resolving wagers to hijack gamblers’ brains and keep them immersed in ceaseless betting action.”
The question of VIPs
The topic of VIP programs has cropped up in conversations across the sports betting industry in recent years, particularly over in Europe.
This was something that was brought up during the Pennsylvania suit. Thompson is said to have first set up an account with FanDuel in October 2020, and two years later, an account with DraftKings. During that time, he is reported to have lost approximately $1.83m.
However, over the course of what is nearly six years, Thompson alleges that he was given VIP status with the sportsbooks, receiving perks such as tickets and accommodation to attend Super Bowl LVI, a gift package to Super Bowl LVII in Arizona, a $500 bottle of champagne, and more.
Thompson’s attorney alleged that his VIP host at FanDuel was aware of his problematic behaviors, supposedly encouraging the player to take a break after a series of losing streaks.
“[W]hat do we think about taking a timeout and enjoying the holidays with the family and starting fresh after the new year?” the FanDuel host text Thompson on Dec. 18, 2022.
Sage is also reported to have received VIP treatment from DraftKings, with the sportsbook said to have arranged free accommodation for a bachelor party in Atlantic City. With a net loss of around $175,000 between the two sportsbooks, he is estimated to have wagered a little over $2m via the sports betting apps.
During the case, it was raised that Sage had placed himself on the Pennsylvania self-exclusion list from March 15, 2025, the same month that he was formally diagnosed with a gambling addiction disorder. But at this time, the lawsuit claims that he was still receiving messages from his VIP host.
The plaintiffs are seeking damages, a jury trial, and an injunctive relief that may have a knock-on effect on how sportsbooks are able to offer certain betting products to players across the US.
